Page 7 of 9 FirstFirst ... 23456789 LastLast
Results 151 to 175 of 201

Thread: Egads! Costco can't be serious!

  1. #151
    Master OptiBoarder
    Join Date
    Sep 2002
    Location
    Denver
    Occupation
    Other Eyecare-Related Field
    Posts
    429
    Quote Originally Posted by drk View Post
    Having said that, I do still draw a line in the sand when our services are being "pimped out" to generate foot traffic. Our acceptance of mass-merchandizers' pimping our services to make a buck is a line we all have unfortunately had to cross a while ago. This is a new line, though, however feeble resistance may prove: if your optical is "loss-leading" and you are selling at artifically-low prices, I think you are predatory and I think you may just have a problem with the FTC.

    Does that scare you, Costco, et al? Good. Class action, baby. A lot of damaged opticians want new gas grills...


    *To be fair: are not prepaid vision plans a type of "membership club"? Hmm...
    I don't know for sure whether Costco sells optical goods below cost as a loss leader to generate foot traffic. But you have to pay for a membership to get in the store, so it would seem that the members already have an incentive to purchase other items there.

    Walmart/Sams have introduced prices for the vast majority of generic prescription drugs that are $4.00 per month. Most other big retailers like Target and Costco are matching the price. Somewhere in another forum there are independent druggists who are complaining about the big retailers selling prescription drugs as a loss leader. Same for tire companies, etc. The big retailers have to be making money on something. The fact is they buy in bulk to get cheaper prices, and their economy of scale creates efficiencies in terms of overhead cost.

  2. #152
    Master OptiBoarder
    Join Date
    Jun 2000
    Location
    California
    Occupation
    Dispensing Optician
    Posts
    2,817
    Quote Originally Posted by m0002a View Post
    I don't know for sure whether Costco sells optical goods below cost as a loss leader to generate foot traffic. But you have to pay for a membership to get in the store, so it would seem that the members already have an incentive to purchase other items there.

    Walmart/Sams have introduced prices for the vast majority of generic prescription drugs that are $4.00 per month. Most other big retailers like Target and Costco are matching the price. Somewhere in another forum there are independent druggists who are complaining about the big retailers selling prescription drugs as a loss leader. Same for tire companies, etc. The big retailers have to be making money on something. The fact is they buy in bulk to get cheaper prices, and their economy of scale creates efficiencies in terms of overhead cost.
    I just got some tires from a local dealer and they were $6 a tire less than Costco.

  3. #153
    Master OptiBoarder
    Join Date
    Sep 2002
    Location
    Denver
    Occupation
    Other Eyecare-Related Field
    Posts
    429
    Quote Originally Posted by CME4SPECS View Post
    I just got some tires from a local dealer and they were $6 a tire less than Costco.
    Did you include mounting and balancing costs? Are you sure it was the exact same tire and load rating? Did the dealer have their tires on sale?

  4. #154
    Master OptiBoarder
    Join Date
    Jun 2000
    Location
    California
    Occupation
    Dispensing Optician
    Posts
    2,817
    Quote Originally Posted by m0002a View Post
    Did you include mounting and balancing costs? Are you sure it was the exact same tire and load rating? Did the dealer have their tires on sale?
    Of course they were the exact same tire. I did not ask the dealer if they were on sale. I just asked him how much they were out the door.

  5. #155
    Manuf. Lens Surface Treatments
    Join Date
    Aug 2002
    Location
    in Naples FL for the Winter months
    Occupation
    Other Optical Manufacturer or Vendor
    Posts
    23,240

    Redhot Jumper Lost leader....................

    Quote Originally Posted by m0002a View Post
    I don't know for sure whether Costco sells optical goods below cost as a loss leader to generate foot traffic.
    Work yourself back on the post's and you will find out that we probably have established why and what on the subject. Costco pays the best salaries and does make money and their optical is no lost leader.

  6. #156
    Optical Chemical Manufacturer
    Join Date
    Jan 2006
    Location
    at Home
    Occupation
    Other Optical Manufacturer or Vendor
    Posts
    342

    Costco does this to make money

    Costco operates an optical department to make money just like any other department. They buy aggressively and sell aggressively. They limit the assortment and control the inventory.

    They do this for a living. Its not a surprise. Its just a well run company that strongly believes in taking good care of its staff members. It is frequently describes as one of the best companies to work for in the US.

  7. #157
    Master OptiBoarder
    Join Date
    Sep 2002
    Location
    Denver
    Occupation
    Other Eyecare-Related Field
    Posts
    429
    Quote Originally Posted by Chris Ryser View Post
    Work yourself back on the post's and you will find out that we probably have established why and what on the subject. Costco pays the best salaries and does make money and their optical is no lost leader.
    That was the same conclusion that I came to in my post. Did you read it?

  8. #158
    OptiBoard Professional William Walker's Avatar
    Join Date
    Jun 2005
    Location
    Jacksonville, FL
    Occupation
    Dispensing Optician
    Posts
    297

    Sorry it took me so long...

    Hello all,

    I haven't been on the Optiboard in a little while (sorry). I'm going to read through the entire thread later this afternoon, but just wanted to make a post before heading off to church (I did get to read the first few pages though).

    DRK, don't worry about a thing. Just as in the examples of when there is a Walmart, or a Lenscrafters, or a company on the internet selling eyewear, each company is going to have it's pros and cons. When I have someone who is used to going to a private optical come to me at Costco for the first time; they at times ask why we are so inexpensive. I tell them that Costco builds it's success on efficiencies. We stick to what we do, and we do it well. However, there are a lot of things (products and services) that we don't do. The examples came up of outside companies drill mounts, high wrap frames, frames that are designed as plano sunglasses, etc... We don't tint old lenses... I will never at a Costco sell an 18k gold frame (like I used to at a private OD's office)... I will not be able to offer one day service...
    The best advice I ever learned in relation to optical business was given at a CE class at Expo East one year. The funny thing is that me being new to management, I had not heard it to that point. The advice was, "You cannot be everything to everyone. Pick what your niche should be, and stick to it at all costs. You cannot compete with (insert big name store here) on scale, so don't try." In our private optical setting, that meant going away from the name brands you'd find in the mall opticals 5 miles away, and going with the hipper, trendier frames. It meant offering a handfull of progressives, and before selling one, showing the patient which ones had a wider distance area, wider intermediate area, or wider near area. We'd explain that there is no one perfect lens, and that we'd consult with them to figure out what was best for their needs. No other optical (major or independant) at that time was doing that in our area, and we thrived. In the first 5 years after inception, we became a $1 million store, which is almost unheard of for startups.
    Costco has been a great company to work for. I go into a company that has all of it's processes figured out. I go in, sell glasses for 8 hours, and I go home. I don't have to work 60 hours in a week to catch up; I know that every 1040 hours, I'll receive a raise of around $1.20 or so. I worked at the private optical getting a raise on average of once every 1.5 years. Each time it was a dollar or so. At Costco, I started in Aug 2005, and since then have gone up $3.00 in wage per hour, and will get another raise in a few months, for another $1.30. I have 401k options where my OD refused them. In the 6 years our Costco has been open, the optical has not lost a single employee, and we have grown to 5 licensed opticians. Here, for our optical employees, we are only allowed to hire Florida Licensed Opticians. If an applicant is ABO certified only, they will not be hired.
    I have to run, to head off to church, but I'll be back on later today. Feel free to reply, or private message me with any questions you might have.

    Thanks,
    William
    William Walker

    Associates in Science in Opticianry
    Associates in Science in Optical Business Management
    Licensed Dispensing Optician
    Board Certified
    Certified Paraoptometric Assistant
    American Board of Opticianry Advanced Certified
    National Contact Lens Examiners Certified

    Next Goal: ABOM

    Optician with Lenscrafters in Jacksonville, FL

  9. #159
    Manuf. Lens Surface Treatments
    Join Date
    Aug 2002
    Location
    in Naples FL for the Winter months
    Occupation
    Other Optical Manufacturer or Vendor
    Posts
    23,240

    Blue Jumper 24 hours gone.......................

    Quote Originally Posted by William Walker View Post
    I have to run, to head off to church, but I'll be back on later today. Feel free to reply, or private message me with any questions you might have.

    Thanks,
    William
    Hey William................its now 24 hours since you went off to church. We are all anxious and waiting for your continuation. :hammer:

  10. #160
    OptiBoard Professional William Walker's Avatar
    Join Date
    Jun 2005
    Location
    Jacksonville, FL
    Occupation
    Dispensing Optician
    Posts
    297
    I'm very religious?

    :p

    I'll be back on later tonight with more time.
    William Walker

    Associates in Science in Opticianry
    Associates in Science in Optical Business Management
    Licensed Dispensing Optician
    Board Certified
    Certified Paraoptometric Assistant
    American Board of Opticianry Advanced Certified
    National Contact Lens Examiners Certified

    Next Goal: ABOM

    Optician with Lenscrafters in Jacksonville, FL

  11. #161
    Manuf. Lens Surface Treatments
    Join Date
    Aug 2002
    Location
    in Naples FL for the Winter months
    Occupation
    Other Optical Manufacturer or Vendor
    Posts
    23,240

    Redhot Jumper Forgetting...........................???????????

    William.........did you forget your friends ?????????

  12. #162
    OptiBoard Professional William Walker's Avatar
    Join Date
    Jun 2005
    Location
    Jacksonville, FL
    Occupation
    Dispensing Optician
    Posts
    297
    Quote Originally Posted by Barry Santini View Post
    Hey, I'm been a proponent for eliminating licensure in NY for years....

    Barry
    Sorry Barry, I couldn't help but get a chuckle out of that.
    William Walker

    Associates in Science in Opticianry
    Associates in Science in Optical Business Management
    Licensed Dispensing Optician
    Board Certified
    Certified Paraoptometric Assistant
    American Board of Opticianry Advanced Certified
    National Contact Lens Examiners Certified

    Next Goal: ABOM

    Optician with Lenscrafters in Jacksonville, FL

  13. #163
    OptiBoard Professional William Walker's Avatar
    Join Date
    Jun 2005
    Location
    Jacksonville, FL
    Occupation
    Dispensing Optician
    Posts
    297

    Phew! Finally read the entire thread...

    "The study finds 21 percent of customers who went to an independent eye doctor for their eye exam later bought
    glasses or contact lenses at a retail store, almost uniformly because of cost."
    http://www.jdpower.com/pdf/2005169.pdf

    I think too often we get a little too bent out of shape over price, both in our aquisition costs, and what we feel we can retail goods at. The above quote from the JDPower results I think is where most opticals (who aren't the least expensive) place their metric. I believe that this statement is incomplete. When browsing online (just google [or any other search engine] Costco Optical), I find that when patients praise Costco Optical, they are doing it for a few reasons. One is that their eyewear is satisfactory to them, i.e. - they can see well, they don't look too shabby in them as well. The second, and more important in my opinion, is that not only is our price lower than our competitors, it is CONSIDERABLY lower than our competitors.

    "I bought mine at Costco Optical. Cheaper than Walmart.

    At Walmart I paid over $300.00 for 2 pairs and the frames for 1 pair were free.
    I got a cheap back up pair and a polarized nicer pair.

    3 years later- last year...
    At Costco Optical, I bought Cynthia Rowley designer I guess, but I liked the style and not the name.
    They are plastic frames but the ears are metal and have flexibility.
    I also got the scratch protection and glare reducer and polarized too.
    For the back up pair I bought some plastic cheap clear glasses.
    I had a coupon for 60.00 off too.
    My total came to 159.00 for 2 pairs.



    The main point to get across when figuring out why this patient bought glasses from Costco is not because they were $159.00; it is because we were almost 50% lower than Walmart. If independants focus on value, not simply end price being the metric to evaluate (and hopefully continue to reevaluate) themselves on, you cannot help but thrive.

    Being a very young optician, I get offended pretty quickly over being stereotyped, simply because it happens quite often to me, and I have to admit that I started to get a little peeved when assumptions were made as to the quality of an employee based on the end price a member paid for their glasses or contacts. I appreciate others coming in and sticking up for the idea of judging someone on their own merits. One fact that should have put an end to it (at least in my licensed state) is that Costco here will only hire already licensed opticians. That being the case, where do you think they started out at? By definition, some optical other than Costco, and by sheer percentages, a decent amount came from the private OD/MD sector. That being the case, would those opticians have more knowledge/ability/experience at Costco, or their former employers office?

    (Sorry, I hope I don't sound bitter)

    I really don't know what more to say. I'm much better at answering direct questions than just adding to the fire (whether it be fuel or suppresant). I 100% welcome any questions about either Costco Optical (keep them appropriate :finger: ) or the differences between them and the previous 5 years in managing a private OD's office.

    One thing I didn't want to leave alone was the comment about Costco's wages. Costco will establish a wage for an entry level employee, for example a cashier, or food court employee. Part of our contract with Costco is that, in exchange for doing the best darn job we can (at whatever we do), we get the best darn wage we can. My pay schedule shows me getting a guaranteed raise every 6 months until I have reached an established maximum, wherein I will receive a periodic raise to keep up with inflation, and then, once I hit my 5 year mark, receive a $2000.00 bonus every 6 months. This same formula works for every hourly employee at Costco.
    What makes me most proud of working for Costco is the exemplification of a idea I heard from Marcus Buckingham.

    "...there is nobility, prestige, and respect due for any role done with excellence.
    'You don’t pay a hotel housekeeper as much as you pay a CEO. But what if a housekeeper is so good that guests demand to stay in her section? If she is good enough to dramatically affect the customer experience, then she is the Michael Jordan of housekeepers. That’s brilliant and tremendously valuable. '"
    http://www.managementconsultingnews...._interview.php

    Okay, time for me to go to bed.

    Thanks for listening (or reading, I guess)!
    William Walker

    Associates in Science in Opticianry
    Associates in Science in Optical Business Management
    Licensed Dispensing Optician
    Board Certified
    Certified Paraoptometric Assistant
    American Board of Opticianry Advanced Certified
    National Contact Lens Examiners Certified

    Next Goal: ABOM

    Optician with Lenscrafters in Jacksonville, FL

  14. #164
    Master OptiBoarder OptiBoard Gold Supporter Judy Canty's Avatar
    Join Date
    May 2000
    Location
    Virginia Beach, VA
    Occupation
    Dispensing Optician
    Posts
    7,482
    Excellent response. The next time I'm in FL, I'm looking you up. Please PM me with your location.

    Judy

  15. #165
    Manuf. Lens Surface Treatments
    Join Date
    Aug 2002
    Location
    in Naples FL for the Winter months
    Occupation
    Other Optical Manufacturer or Vendor
    Posts
    23,240

    Blue Jumper Thread concluded.....time to reflect

    Quote Originally Posted by William Walker View Post

    Part of our contract with Costco is that, in exchange for doing the best darn job we can (at whatever we do), we get the best darn wage we can. .............................once I hit my 5 year mark, receive a $2000.00 bonus every 6 months.

    ......................................there is nobility, prestige, and respect due for any role done with excellence.
    drk.............................we just came to a conclusion, and I think that was one hell of a thread that started out as a bashing thread and then slowly narrowed down to the fact, that the to be bashed company turned out to be better in every aspect we touched,

    So now hoe are you going to run and change your office to beat this competitor or at least make your own business equivalent in quality, price and knowledgeable employees dealing with the customers, specially not forgetting the tougher economic times that have been announced.

    People will or can not spend what they used to and will look for lower priced items. We might have to revert back to better service do a little more work in The back office instead of farming everything out.

    Time for reflection.

  16. #166
    What's up? drk's Avatar
    Join Date
    Mar 2004
    Location
    Ohio
    Occupation
    Optometrist
    Posts
    9,388
    You're calling it quits, then, Chris? Well, as usual I'd like the final word.

    You know, my point isn't what I'm going to do. I'm doing just fine. I will continue to press to keep the best products at the best prices (value). I do know some pretty fat ODs whose patients are overpaying. Costco is a good reason to concentrate on value. God Bless America.

    My question is what Costco will do to the industry, in general, not my office in particular. Are they "predatory" like Walmart has been accused of? I guess Wally has paved the way and suffered the slings and arrows enough that the point is moot. Nothing we're going to do about it.

    In a way, I am glad that the private sector can come up with cost-effective optical goods and services, vs. a government system. A citizen is free to be cheap as they like. And if Costco's general employee compensation structure is acceptable to employed opticians, and if Costco is concerned about licensure, I think it's great.

    But I think it's a little scary. The next "Costco" may not be so magnanimous.

    In general, I don't like the "employee of the big machine" model for health care, and I don't like non-health care professionals running health care operations based on profit motive. The alternative of nationalized health care is just as scary. What's the "right way"?

    I think it's simply this: let's promote the traditional model of health care being administered by health care professionals. Let's not have the health care system owned by the government, nor the for-profit corporate community. Let the professionals own the health care system!

    Maybe this isn't as germane in opticianry as I would like it to be :(

  17. #167
    Bad address email on file k12311997's Avatar
    Join Date
    Feb 2005
    Location
    PA
    Occupation
    Dispensing Optician
    Posts
    1,921
    William

    first a restatement from above posts if my understanding is correct.

    Costco optical in no way relys on the sales or percentage markup from the rest of the store to stay open.

    is that a factual statement?

    The reason I ask is typicaly when someone asks why walmart, costco, etc is less expensive I brush against buying power but the main point of my argument is that there are different percentages at those type of stores on different merchandise and since we don't sell electronics and jewelery two Items that traditionaly have high mark up we can't lower our prices in optical in hopes that when you come in to our office you'll stay and buy something else.

  18. #168
    Master OptiBoarder
    Join Date
    Dec 2000
    Location
    BeeEffEee
    Occupation
    Optometrist
    Posts
    430
    Quote Originally Posted by Chris Ryser View Post
    Ask your manufacturers rep for a price list as for example in the Congo and you might see even Costco looking in awe.
    $45 Retail for a Panamic in Rio. Been there, seen that :) Coach frames are $600 though..

  19. #169
    Master OptiBoarder
    Join Date
    Dec 2000
    Location
    BeeEffEee
    Occupation
    Optometrist
    Posts
    430
    Quote Originally Posted by Chris Ryser View Post
    People will or can not spend what they used to and will look for lower priced items. We might have to revert back to better service do a little more work in The back office instead of farming everything out.

    Time for reflection.

    My patients have more discretionary income now than any previous years. 94-97% of people live pay check to pay check. That doesn't mean they're broke or poor. It means they are going to spend it. At nearly $800 for a Hoya ID, my patients are happy to spend it. I don't work in a rich neighborhood, but in the suburbs. I have 3 costcos within 10 miles of me. I have many folks that go there come straight back with service and product complaints.

    ** Edited for Troll-like overtones that'd I would rather be undertones ** Of note, in the time it took me to reread and edit, I sent a parent back to Sam's to get her kids lenses redone (+3.50 vs +2.75).

    Nettie... One bad apple shouldn't spoil the rest. My apologies.
    Last edited by allanon; 02-08-2007 at 02:42 PM. Reason: Troll-Like

  20. #170
    small but mighty! Nettie's Avatar
    Join Date
    Sep 2005
    Location
    Utah
    Occupation
    Dispensing Optician
    Posts
    228
    Quote Originally Posted by allanon View Post
    My patients have more discretionary income now than any previous years. 94-97% of people live pay check to pay check. That doesn't mean they're broke or poor. It means they are going to spend it. At nearly $800 for a Hoya ID, my patients are happy to spend it. I don't work in a rich neighborhood, but in the suburbs. I have 3 costcos within 10 miles of me. Folks that go there come straight back because the service sucks, the product sucks, and I give them the time of day.
    Bitter???

    I think you are wrong to judge all Costco's on what one of your returning patients may have said. My service does NOT suck, nor the products I sell. The people that come in to us DO have money to spend, they would just rather get more for their money. Two of our local newscasters are on the news every night at 10 pm wearing glasses I sold them, and I am sure they could have afforded your $800 lenses. I am sure you are able to offer many things I do not sell so why don't you focus on that rather than being so hateful??? I refer every patient out to another business that wants something I do not carry, rather than making them think that it would make no difference to go from an executive (I do not carry executives)to a progressive (for example). I also do not bad mouth my competitors because they are trying to make a living just like I am.

  21. #171
    What's up? drk's Avatar
    Join Date
    Mar 2004
    Location
    Ohio
    Occupation
    Optometrist
    Posts
    9,388
    Nettie! Nettie!

    Is "Cost of Goods Sold" on those contribution reports that you mentioned way above?

    I NEED YOU TO TELL ME!

  22. #172
    Manuf. Lens Surface Treatments
    Join Date
    Aug 2002
    Location
    in Naples FL for the Winter months
    Occupation
    Other Optical Manufacturer or Vendor
    Posts
    23,240

    Redhot Jumper Of course they are broke......................

    Quote Originally Posted by allanon View Post

    94-97% of people live pay check to pay check. That doesn't mean they're broke or poor. It means they are going to spend it.
    That is exactly why these well to do ones are actually broke and that is the sad financial news in the USA.

    85% off all newer cars on the road are leased, the houses are mortgaged up to the neck.

    There are close to 20 trillion dollars in credit card debts.

    People used to save for a rainy day, build themselves a nest egg on which they could rely on, when a family member lost a job. These days thousands of people give back the key to their overly expensive homes they thought they could afford. If they would have had some savings they could have saved that trip to the bank.

    All these people will eventually need glasses and will have to take care of their teeth. Both the optical and dental care businesses go hand in hand when finances get tough. When new lenses are needed people will get only new lenses and most probably of the cheaper variety and will stall going to the dentist until the pain will force them to make the trip and they will spend a little as possible.

    When that moment arrives the Costco's will hire the optometrist's and opticians that created themselves the reputation of being expensive and the people will make a wide circle around their stores until they have to close them.

    Over the last close to 5 years I have been active on the Optiboard I have watched a great amounts of post's glorifying sales the most expensive lenses and frames and very little of how to repair a frame or saving some lenses that are slightly scratched, which by removing the hard coat would be like new.

    The optical retail industry has blindly followed the advertising hype of the few large corporations because they supplied them the customers that were asking for certain brand products and have helped fill the coffers of those corporations who soon will become the dictators of the industry.

    The optical retail is facing several problems in the near future. The economy and the large corporations on the other side.

    :finger:

  23. #173
    Master OptiBoarder
    Join Date
    Dec 2000
    Location
    BeeEffEee
    Occupation
    Optometrist
    Posts
    430
    1. See apology and edit above.

    2. I really don't stress over Costco, Wally World, BJ's, Sams, etc. I consider them to be in a niche that is different than mine. They all largely cater to folks that perceive value being low price. I cater to folks that place value on current, trendy product with trendy lines and service at a level that we hope rivals the Ritz.

    Am I bitter? Sure, in the sense that I want to have a monopoly and charge $2mil for your glasses. In reality, I have better things to do with my time than fret over the neighbor. In fact, I just raised my prices.

    Thanks for playing.

  24. #174
    Master OptiBoarder OptiBoard Gold Supporter Judy Canty's Avatar
    Join Date
    May 2000
    Location
    Virginia Beach, VA
    Occupation
    Dispensing Optician
    Posts
    7,482
    One question that comes to mind is "Can you afford to shop in your shop?" Can your parents, friends, neighbors? I couldn't pay $800 for a pair of PALs no matter how wonderful the manufacturer says they are.

  25. #175
    small but mighty! Nettie's Avatar
    Join Date
    Sep 2005
    Location
    Utah
    Occupation
    Dispensing Optician
    Posts
    228
    drk,
    I do factor in my cost of goods sold, just like any other business. What is left over at the end of the month is profit. Any parts, frames, lenses, doctors equipment....all of it is factored into my budget. I hope this answers your question.

Thread Information

Users Browsing this Thread

There are currently 1 users browsing this thread. (0 members and 1 guests)

Similar Threads

  1. Anyone employed with Costco Optical??
    By smithaboc in forum General Optics and Eyecare Discussion Forum
    Replies: 8
    Last Post: 05-14-2009, 12:02 PM
  2. Costco lenses question
    By eyenaive in forum General Optics and Eyecare Discussion Forum
    Replies: 2
    Last Post: 07-03-2006, 10:18 AM
  3. Costco only sells ONE progressive?!?
    By William Walker in forum Progressive Lens Discussion Forum
    Replies: 59
    Last Post: 05-31-2006, 08:21 PM
  4. Costco
    By nyoptiguy in forum General Optics and Eyecare Discussion Forum
    Replies: 21
    Last Post: 10-12-2005, 10:00 PM
  5. Costco optical pricing
    By rolandclaur in forum General Optics and Eyecare Discussion Forum
    Replies: 11
    Last Post: 07-05-2005, 12:44 PM

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •